Public Disclosure Copy The World Bank Implementation Status & Results Report MNA Micro, Small and Medium Enterprise Financing Facility (P124341) MNA Micro, Small and Medium Enterprise Financing Facility (P124341) MIDDLE EAST AND NORTH AFRICA | Tunisia | Finance & Markets Global Practice | IBRD/IDA | Adaptable Program Loan | FY 2012 | Seq No: 10 | ARCHIVED on 24-Jun-2016 | ISR24219 | Implementing Agencies: Caisse des Depots et des Consignations, Central Bank of Tunisia Key Dates Key Project Dates Bank Approval Date:14-Jul-2011 Effectiveness Date:04-Apr-2012 Planned Mid Term Review Date:31-Mar-2016 Actual Mid-Term Review Date:23-May-2016 Original Closing Date:31-Jan-2017 Revised Closing Date:31-Jan-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve access to finance for micro, small and medium enterprises in Tunisia, including through enabling creditworthy MSMEs to maintain access to credit. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Lines of Credit:(Cost $134.87 M) Patient financing:(Cost $15.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions 6/24/2016 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MNA Micro, Small and Medium Enterprise Financing Facility (P124341) The Additional Financing of EUR 72.6 million was approved by the Bank's Board of Executive Directors on April 17, 2014, and was ratified by the National Assembly on September 17, 2014. The Loan has been declared effective on February 11, 2015. The Additional Financing is disbursing satisfactorily. 6/24/2016 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MNA Micro, Small and Medium Enterprise Financing Facility (P124341) 6/24/2016 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MNA Micro, Small and Medium Enterprise Financing Facility (P124341) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Low  Low Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Increase in total no. of MSME loans in PFI portfolios (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -22.50 -5.90 13.00 Date 31-Dec-2011 23-Nov-2015 31-Dec-2015 31-Jan-2018 6/24/2016 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MNA Micro, Small and Medium Enterprise Financing Facility (P124341) Comments Source: CBT IFR covering 2nd semester 2015. Baseline is June 2015 for actual figure. PFI portfolio comprised 5 leasing companies (TL, CIL. HL. ATL and AIL) at the time of the reporting PHINDPDOTBL  Increase in the total volume of outstanding MSME portfolio of PFIs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -22.30 -6.10 25.00 Date 31-Dec-2011 23-Nov-2015 31-Dec-2015 31-Jan-2018 Comments The team is not able to input a negative figure on the actual result for Dec 31, 2015, which should read -6.1. Team is currently working with IT to resolve this issue. Overall Comments Since June 2015, the number and volume of loans to MSMEs granted by the PFIs has decreased by -5.9% and -6.1% respectively. This can be explained by three factors: 1- The banking sector liquidity has further deteriorated during the second semester of 2015. 2- Banks (including PFIs) have continued shifting their assets toward Government bonds and large companies lending (flight to quality). 3- The new provisionning rules have pushed the banks to lend to parties with stronger collateral (which usually exclude MSMEs). Source: IFR reporting from the Central Bank as of May 19, 2016. Baseline is June 2015 for actual figure. PFI portfolio comprises 5 leasing companies: TL, CIL. HL. ATL and AIL Intermediate Results Indicators PHINDIRITBL  No. of MSME loans financed by the Line of Credit (sub-component 1.1) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 199.00 330.00 379.00 Date 31-Dec-2011 23-Nov-2015 30-May-2016 31-Jan-2018 Comments Actual value includes both Initial Financing and Additional Fianncing 6/24/2016 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MNA Micro, Small and Medium Enterprise Financing Facility (P124341) PHINDIRITBL  Volume of MSME loans financed by the Line of Credit (sub-component 1.1) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 31.88 61.08 110.00 Date 31-Dec-2011 23-Nov-2015 30-May-2016 31-Jan-2018 PHINDIRITBL  Volume of financing from the Line of Credit to PFIs (sub-component 1.1) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 33.91 65.71 110.00 Date 31-Dec-2011 23-Nov-2015 30-May-2016 31-Jan-2018 PHINDIRITBL  No. of participating PFIs (sub-component 1.1) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.00 11.00 9.00 Date 31-Dec-2011 23-Nov-2015 30-May-2016 31-Jan-2018 PHINDIRITBL  No. of active MSME loan accounts in PFIs (sub-component 1.1) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 103130.00 72814.00 72337.00 125000.00 Date 31-Dec-2011 23-Nov-2015 31-Dec-2015 31-Jan-2018 6/24/2016 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MNA Micro, Small and Medium Enterprise Financing Facility (P124341) PHINDIRITBL  Volume of outstanding MSME loans in PFIs (sub-component 1.1) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.36 4.20 4.20 4.00 Date 31-Dec-2011 31-Dec-2014 31-Dec-2014 31-Jan-2018 Comments Indicator reported in IFR for 2015 however the team is seeking clarification from BCT on the reported result. PHINDIRITBL  Loans to women-led SME (sub-component 1.1) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 12.00 10.00 13.00 Date 31-Dec-2013 31-Dec-2014 30-May-2016 31-Jan-2018 PHINDIRITBL  Micro-finance loans financed by the Line of Credit (sub-component 1.2) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 5271.00 10000.00 Date 31-Dec-2013 23-Nov-2015 30-May-2016 31-Jan-2018 PHINDIRITBL  Volume of micro-finance loans from the Line of Credit (sub-component 1.2) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 6270000.00 25000000.00 Date 31-Dec-2013 23-Nov-2015 30-May-2016 31-Jan-2018 6/24/2016 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MNA Micro, Small and Medium Enterprise Financing Facility (P124341) PHINDIRITBL  Micro-finance loans to women financed by the Line of Credit (sub-component 1.2) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 0.00 55.00 60.00 Date 31-Dec-2013 23-Nov-2015 30-May-2016 31-Jan-2018 PHINDIRITBL  Patient financing operations financed under component 2 (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 15.00 Date 31-Dec-2013 23-Nov-2015 30-May-2016 31-Jan-2018 PHINDIRITBL  Volume of patient financing operations funded under component 2 (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 490000.00 15000000.00 Date 31-Dec-2013 23-Nov-2015 30-May-2016 31-Jan-2018 PHINDIRITBL  Portfolio at Risk >90 days for MSMEs (weighted by asset size) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 21.60 25.10 27.20 21.60 Date 31-Dec-2011 31-Dec-2014 31-Dec-2015 31-Jan-2018 Comments The deterioration of the PAR (90 days) since December 2014 can be explained by higher NPL of MSME lending portfolio. 6/24/2016 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MNA Micro, Small and Medium Enterprise Financing Facility (P124341) PHINDIRITBL  Portfolio at Risk - Microfinance (Percentage, Core) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 0.00 1.59 3.00 Date 31-Dec-2013 23-Nov-2015 30-May-2016 31-Jan-2018 PHINDIRITBL  Percentage of project-supported institutions that are reporting on this indicator (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 25.00 100.00 50.00 PHINDIRITBL  ROA of PFIs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.20 1.10 1.10 1.20 Date -- 31-Dec-2014 31-Dec-2014 31-Jan-2018 Overall Comments No recent reporting from CBT on this indicator. The team is following-up to obtain more recent data. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P124341 IBRD-80810 Effective USD 50.00 50.00 0.00 45.32 0.00 91% P124341 IBRD-83600 Effective USD 100.00 100.00 0.00 38.36 52.46 38% Key Dates (by loan) 6/24/2016 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MNA Micro, Small and Medium Enterprise Financing Facility (P124341) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P124341 IBRD-80810 Effective 14-Jul-2011 07-Sep-2011 04-Apr-2012 31-Jan-2017 31-Jan-2017 P124341 IBRD-83600 Effective 17-Apr-2014 22-May-2014 11-Feb-2015 31-Jan-2018 31-Jan-2018 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P146799-TN-MSME Development Project Additional Financing 6/24/2016 Page 10 of 10 Public Disclosure Copy